True North Commercial REIT T.TNT.UN

Alternate Symbol(s): TUERF

True North Commercial Real Estate Investment Trust (the REIT) is a Canada-based unincorporated, open-ended real estate investment trust. The REIT is primarily focused on creating value for unitholders through the investment in and ownership of commercial properties in Canada. The REIT’s primary objective is to maximize total returns to its unitholders. Its returns include a stable, reliable, and tax-efficient monthly cash distribution as well as long-term appreciation in the value of its units through the effective management of a portfolio of commercial properties. The REIT owns and operates a portfolio of about 40 properties consisting of approximately 4.6 million square feet in urban and select strategic secondary markets across Canada focusing on long-term leases with government and credit-rated tenants. Its properties include 36 and 38 Solutions Drive, 500 Beaverbrook Court, 61 Bill Leathem Drive, 675 Cochrane Drive, and 1112 Fort Street, among others.

TSX:TNT.UN - Post by User

True North Commercial REIT > 19.1 MILLION NET PROCEEDS

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Comment by matt2018on Apr 19, 2024 9:28pm

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Post# 35999188

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:19.1 MILLION NET PROCEEDS

Absolutely correct that the $61.4M is going towards the total debt.
That is going to bring debt down to appr $763M.
Thats 7.5% of the total debt going to be paid off by selling less than 4% (186k sq/ft) of the portfolio.
Those 4 recent sales were at an avg of $330/ft.
Even if you apply a conservative $285/ft to the appr 4.6M sq/ft of remaining assets (after all the deals close), thats an implied value of appr $1.3B for the real estate. Less the $763M in debt, divide by 15M shares.
What is the implied NAV now?

luscar99 wrote: You're probably right about the debt reduction.

But probably wrong on the 2nd assumption.
They sold what they could sell more easily. Mostly fully occupied small buildings.

The larger buildings are a much tougher sell. If those could be have been sold at or near IFRS values (implying $29 NAV) the share price wouldn't have craterred 80%.

That's actually the crux of the matter. Very few of these large buildings have been sold to non-government entities and those few that have been sold were sold for miserable amounts.